Investment Property Savings with Family Loans

Use a family loan to finance a home for your college student or elderly relative

Whether your child is heading off to college or you have an elderly parent in need of a home, you have options when it comes to choosing property. If you make the decision to buy a home and build equity rather than pay monthly rent, a family mortgage loan might be the ideal borrowing solution. Family loans are structured to provide individuals or couples who already own a primary residence, the opportunity to purchase an investment property at a lower interest rate than commonly available.

Family mortgage loan borrowers are primarily:

  • Parents looking to provide off-campus housing for their student in college
  • Adults looking to purchase property for their elderly parents
  • Individuals seeking to secure a residence for an immediate family member who is unable to do so independently

Family loan terms and specifications

To qualify for family loan rates, your purchase has to meet specific terms and conditions regarding the use of the loan, property type, financing term and occupancy.

Family Loan Uses:
  • New purchase intended for occupancy by an immediate family member
  • Refinance of an existing Citizens Bank, N.A. loan for the occupancy by an immediate family member
Approved Property Applications:
  • Single Family Home
  • Condominium
Family Loan Basics:
  • Maximum 80% LTV
  • Standard 33%/38% debt to income ratios apply
  • No subordinate or secondary financing is allowed
  • Credit approval necessary
  • The occupants of the property may not be an applicant for the loan
  • Borrower must sign the Family Loan Program Disclosure that states:
    • A specified immediate family member will occupy the home
    • That the property is not intended for rental
  • Gifts are not permitted unless they come from the occupant
  • Seller contribution limits for primary residences apply

Finance your family mortgage loan with Citizens Bank

A family loan can save you money and provide an additional option when purchasing a second home. To find out if a family mortgage loan from Citizens Bank is right for you and your family, and how much you can save with family loan rates. Speak to a mortgage representative at 1-888-567-1510 or visit a local branch.